U.S. election

Tomorrow’s FOMC statement is expected to prepare markets for a December rate hike. Ten-year sovereign debt yields are up 5 basis points in the U.S., 4 bps in Britain, and 3 bps in Germany. In Japan, where the BOJ now targets the 10-year JGB, that yield remained unchanged overnight. The U.S. election one week from […] More

Contrary to popular opinion, politics and economics do not operate in separate universes. Politics is the business governing who gets to make the rules for all other business activity and how the laws will be enforced and interpreted. Politics determines policy, and abrupt changes in policy and policy communication influence economic performance profoundly. That’s why […] More

Today’s U.S. presidential election outcome is generally considered too close to call. Representing world opinion, the Economist and Financial Times endorsed Obama despite reservations about his first term. In a surprise to many analysts, the Reserve Bank of Australia declined to cut the 3.25% Official Cash Rate further. The Aussie dollar has climbed 0.7% against […] More

Share prices in Europe have slumped 1.3% in Spain, 1.1% in Italy, 0.8% in France, 0.5% in Britain and 0.4% in Germany. Equities in the Pacific Rim earlier closed down 0.8% in Indonesia, 0.6% in South Korea, 0.5% in Japan and Hong Kong, 0.4% in Taiwan, 0.3% in Singapore, and 0.2% in China and New […] More

The dollar is off 0.1% against the euro, unchanged relative to the Swissy, and up 0.2% versus the yen. Against commodity-sensitive currencies, the greenback firmed 0.1% against the Aussie dollar but eased 0.2% against the Canadian dollar and by 0.4% relative to the kiwi. The dollar lost 0.7% against sterling and 0.1% against the yuan. […] More

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